KABOOM! Under President Trump U.S. Economy Explodes With 4.1% Growth Rate

SUMMARY FROM VARIOUS NEWS ARTICLES

The U.S. economy exploded in the second quarter of 2018, with the gross domestic product (GDP) climbing 4.1% — nearly doubling the first quarter, which was revised up to 2.2%.

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The booming rate is the highest since the third quarter of 2014 and just the third-highest since the Great Recession began in 2008. The running four-quarter average is 3.1%, considered by economists to be a very strong number.

In Q2 of 2018, consumer spending grew 4%, while nonresidential business investment jumped 7.3%, both also considered strong numbers.

Economists credit Trump's tax cuts with the high GDP growth. Both companies and consumers have been spending again as unemployment plunged to an 18-year low and the housing market boomed.

"When you drop taxes and increase spending, even if some of it is saved rather than spent, it boosts growth," Jim O'Sullivan, chief economist at High Frequency Economics, told CNBC. "Ultimately, that boost won't last forever, and of course you've added to the government debt. But there's no question that it's stimulative."

The tax cuts greatly reduced business tax rates, giving businesses immediate relief — and extra spending cash. Thousands raised employees' wages, while others used the cash infusion to expand.

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